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Building On Early Bid

AUSSIE BONDS

ACGBs are just off session highs, having nudged higher after the Sydney open, before leaning on a bid in wider core global FI markets.

  • Cash ACGBs run 2.5-5.5bp richer across the curve, with the 10- to 12-Year zone leading the way higher. YM is +2.6 and XM is +5.2. The 3-/10-Year EFP box has flattened, with 3-Year EFP pushing wider and 10-Year EFP little changed, while Bills run flat to 3 ticks richer through the reds.
  • There was little in the way of an immediate, meaningful reaction observed on the release of CBA household spending, monthly Westpac consumer confidence, and weekly ANZ-Roy Morgan consumer confidence data.
  • Looking ahead, results from the auction of A$100mn of Feb-50 index-linked paper will cross at the top of the hour, with the NAB business confidence reading due half an hour after, rounding off the day’s domestic data releases.

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